The pygmalion effect refers to situations where high expectations lead to high performance, and low expectation leads to low performance. The pygmalion effect was first observed in a classroom when the psychologists Robert Rosenthal and Lenore Jacobson observed all students in a single California elementary school. They were given a disguised IQ test at the beginning of the study. These scores were not declared to teachers, and they were told that some of their students (about 20% of the school chosen at random) could be expected to be "intellectual bloomers" that year, doing better than expected in comparison to their classmates. The bloomers' names were made known to the teachers. At the end of the study, all students were again tested with the same IQ test used at the beginning. All six grades in both experimental and control groups showed a mean gain in IQ from before the test to after the test. However, first- and second-graders showed statistically significant improvements favoring the experimental group of "intellectual bloomers."

The experiment  led to the conclusion that teacher expectations can influence student achievement, particularly for the youngest children. Rosenthal believed that even attitude or mood could positively affect the students when the teacher was aware of the "bloomers." The teacher may pay closer attention to and even treat the child differently in times of difficulty.

The same experiment  has also  been applied to the fields of management, business, and sports. The Pygmalion effect has both academic and practical implications. For example, if a manager believes in the abilities of their team, the team will exceed one whose manager believes the opposite, even if the two groups are equally skilled.

If a researcher has high expectations that patients assigned to the treatment group will succeed, these patients may have better outcomes than the control group. The Pygmalion effect demonstrates the power of expectations in shaping behavior. We tend to internalize the labels that others place upon us. The Pygmalion effect works circularly:

- Others’ expectations of us influence their behaviors toward us.

- Other’s behaviors toward us affects how we see ourselves.

- How we see ourselves impacts our behaviors.

- Our behaviors toward others affects their beliefs, reinforcing their expectations.

The pygmalion effect is very  important to be studied and understood by people in relationships to help their partner perform better in life, and teachers to ensure their students do  well in their studies, as well as  leaders to make sure their team perform  well.