How modelling approaches shape service differentiation for heterogeneous customers: a systematic review of supply chain models
Year: 2026
Type: review
Study design: Systematic Review
Abstract: Supply chains increasingly rely on service differentiation to serve heterogeneous customers. This heterogeneity arises as modern customers differ in attributes such as valuation, patience, green preference, return/risk aversion, strategic waiting, and channel preference. Yet, no prior review has integrated customer heterogeneity with service differentiation strategies and systematically compared how the choice of modelling approach influences supply chain decisions. This paper conducts a systematic literature review following the PRISMA 2020 protocol. The review identifies six major dimensions of customer heterogeneity and seven service differentiation levers. The analytical findings show that game-theoretic models excel at capturing strategic interaction and self-selection but often assume rationality and complete information. Further, optimisation models were found to handle operational constraints well but rarely include customer self-selection. Simulation studies allowed rich behavioural heterogeneity but lacked generalisable optimality. Lastly, hybrid approaches were found to be emerging but still remain underexplored. The study further identifies critical gaps such as limited empirical validation, fragmented treatment of multi-dimensional heterogeneity, and insufficient integration of sustainability and coordination mechanisms. This review advances theory by providing a comparative framework linking modelling choices to heterogeneity and differentiation. It also offers managers a decision aid for selecting service levers based on customer segment characteristics.
Source: Cogent Business & Management
Author: Sayan Chakraborty
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,165
OpenAlex ID: W7214015331