QPractice question
In the Tesla's direct-to-consumer model example, Tesla's direct-to-consumer model primarily demonstrates which concept?
  1. A.Channel Design Decisions ✓
  2. B.Types of Retailers
  3. C.Wholesaler Types
  4. D.Supply Chain Management Basics
Why this answer:

Tesla's direct-to-consumer model is the textbook illustration of Channel Design Decisions. The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.

How to think about questions like this

Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.

For Channel Design Decisions specifically, look for the signal: Wrong channel choice destroys an otherwise good product. That signal is what distinguishes the right answer from plausible-sounding alternatives.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Channel Design Decisions for a worked example you can adapt to your assignment.