Grades function as an important tool for instructors, both to communicate information to students about their performance and to motivate them to try harder to succeed. This research examines student reactions to the presentation of grades in a marketing course to observe their impact on student ratings, perceptions, attributions, and emotions. A study compared different patterns of grades for three exams in which students could receive a 3.0 or similar grade point average (GPA). The results indicate that, holding overall GPA equal, students like a decline in grades the least, but they do not necessarily prefer improvement of grades over receiving the same grade throughout the term. Grades perceived to be bad have a disproportionate impact, regardless of the quality of the grades received later in the semester. Findings regarding student reactions support the literature on relative deprivation and on the asymmetry of negative and positive information.