Not sure if you’re planning to implement breadcrumbs on mobile/app or desktop, or what that whole experience is like, but the common design for most breadcrumbs is in horizontal format with a character or symbol that separates distinct parts of data, like you have with the ‘/’.
Can you share more on the experience? Is the goal of the breadcrumb to go “back” or to explore multiple levels (and how many max levels)?
In terms of design, I would fall back on some UX principles, specifically Jakob’s Law, where user’s tend to spend most of their time on other sites, and through those learned experiences, they prefer every site (yours included) to work the same way as all the other sites they’ve ever explored.
Option 2’s visual representation variation:
- where left align, and not visually nested, might come across as single page text links
- where made into of buttons, might be visual overload to a user if there are more than three step progressions (and equally taking up too much space before beneficial content). It looks like those buttons are call to action buttons rather than links, and then “London” looks like the odd one out.
In terms of testing, the best way is to A/B test two pages with the different breadcrumb styles with your users. You can use tools like Optimizely to run your tests, and then you would gather and analyze the metrics like CTR (click-through rates), which breadcrumbs styles are they clicking on and going deeper into the site, etc.
Another method for usability testing is guiding a user to complete a specific task: how long can would it take a user to progress back to ‘construction services’ from landing on the ‘London’ page without having to press the back button on the browser (which can sometimes be intuitive for a user). Observe how they react: are they having navigation issues; which option are they able to find their way around more quickly, etc.