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18 July, 10:45

Marco is a franchisee with Daggies, a chain of sandwich shops. His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops. Soon afterward, Marco's business deteriorated and he too was forced to close. This is an example of:

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  1. 18 July, 11:06
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    The coattail effect

    Explanation:

    Clearly, the Daggies franchise were a huge part of Marco's success and attracted many customers for the business. This is why Marco deteriorated as soon as many Daggies franchisees closed.

    The coattail effect is the phenomenon where an influencing member in a party (franchisee in this case) contributes largely to the success of another, which is the case with Marco and Daggies
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