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?
A) Protectionism
B) Controls on transborder data flows
C) Protection of intellectual property
D) Cultural requirements for adaptation
E) Language translation barriers

Question

Quizplus · Accepted Answer

The Red Lobster needs to adapt to the cultural requirement in China-to refrain its wait-staff from accepting tips for services rendered-in order carry out smooth business there. Because trade in services frequently involves people-to-people contact, culture plays a much bigger role in services than in merchandise trade.

The Red Lobster, a Restaurant, Considers Opening Branches in China