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Peak-End Rule

Peak-End Rule. ——We judge our past experiences almost entirely on how they were at their peak and how they ended . 姜观 明 41014171 Bilingual Accounting. An Experiment →. Exposed to loud & painful noises End. Exposed to the same noises L isten to the noises as much less unpleasant.

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Peak-End Rule

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  1. Peak-End Rule ——We judge our past experiences almost entirely on how they were at their peakand how they ended. 姜观明 41014171 Bilingual Accounting

  2. An Experiment → • Exposed to loud & painful noises • End • Exposed to the same noises • Listen to the noises as much less unpleasant Surprising! They felt more unpleasant! An extended duration of reduced unpleasantness The same initial duration Group A Group B The same “peak”, but a better “end”.

  3. Basic Assumptions → Economic Assumption —— People are rational. Peak-End Rule Assumption —— People are perceptual. Psychological interpretation →

  4. Application in Management --Moments of Truth

  5. Case in Reality----IKEA

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