Final answer:
Service variability means the quality of services varies based on the provider and the context of delivery. Intangible aspects like satisfaction guarantees and free delivery contribute to product differentiation, although each service experience is unique due to service variability.
Step-by-step explanation:
Service variability means that the quality of services depends on who provides them as well as when, where, and how they are provided.
Intangible aspects of a product or service, like promises of satisfaction, a reputation for high quality, or additional services such as free delivery, play a crucial role in product differentiation. Although these aspects are not tangible, they can create strong customer preferences. Intangibility in services refers to the fact that services cannot be seen, touched, or possessed physically; they are experienced instead.
However, it is service variability that addresses how these intangible services can differ based on various factors. Unlike tangible products, services are directly linked to the service provider and their delivery can be inconsistent, resulting in a unique experience every time.