Episode 80 How Klarna uses present bias and temporal reframing to make shopping feel irresistible
This episode unpacks the behavioral science behind Klarna's success. Learn how the brand uses present bias and temporal reframing to reduce friction at checkout, increase willingness to pay, and reshape how consumers perceive cost—without relying on discounts.
Episode Highlights
Klarna's “pay later” taps present bias: pain now feels sharper than pain tomorrow. Deferring payment makes the same purchase feel cheaper, lifting conversion without changing the price.
Breaking a total into small, timed chunks boosts affordability. “Pay in 4” reframes a big outlay as manageable installments, increasing willingness to pay without discounting.
Unit reframing raises perceived value: an $18.99 case feels expensive, yet $1.58 per bottle feels fair. Present the smallest sensible unit to make larger purchases feel digestible.
Resources & Useful Links
See below for additional resources from this week's episode.
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ep78 - Interview: Uri Gneezy, author of Mixed Signals, on why misaligned incentives backfire
We speak with behavioral economist Uri Gneezy, author of Mixed Signals and The Why Axis, about how incentives shape behavior—and sometimes backfire. From mismatched rewards to price signaling and mental accounting, Uri shares how to design incentives that truly work.
