Question

The Red Lobster, a restaurant, considers opening branches in China. However, the restaurant's labor union feels that since accepting tips by wait-staff is considered in bad taste in China, they will face considerable loss. Therefore, they demand to know how employees would be compensated for this since a great portion of a typical wait-staff person's compensation comes in the form of tips. Which of the following barriers a consumer services marketer faces in a foreign market is illustrated in this scenario?

1) Cultural barrier
2) Language barrier
3) Economic barrier
4) Legal barrier

Answer 1

The barrier to consumer services marketer faces in this scenario is cultural barrier. The labor union's concern about the cultural differences in China regarding the acceptance of tips by wait-staff indicates that there may be a clash between the restaurant's current practices and the cultural norms in China.

Step-by-step explanation:

The barrier to consumer services marketer faces in this scenario is cultural barrier. The labor union's concern about the cultural differences in China regarding the acceptance of tips by wait-staff indicates that there may be a clash between the restaurant's current practices and the cultural norms in China. This cultural barrier may lead to a considerable loss for the restaurant if they do not find a suitable solution to compensate their employees without relying heavily on tips.