Pygmalion effect refers to the idea that if people believe that something is true, they will act in a manner consistent with that belief. Pygmalion effect is also a self -fulfilling pr ophecy; an expectation that is confirmed because of the behavior of those who hold the expectation. Example: the tendency of teacher expectancies to become self-fulfilling prophecies, causing students to perform better or worse depending on their teacher"s estimation of their potential.

Moreover, Pygmalion Effect refers to the positive change of a person's performance or perception of a situation, based on expectation and encouragement by others.