Research has shown that seeing another person (i.e., a model) perform at a certain level can influence the goal choice and performance of an observer. This study extended these findings by examining the model's effects on two potential explanatory mediators: expectations of reaching different performance levels and valence at those levels. The moderating effects of observer task experience and self‐esteem were also examined. In a repeated measures design, results showed that model performance influenced observers' goals, task performance, expectancies, and valence ratings. Path analyses indicated that expectancies mediated observational effects on goal choice. Results also indicated significant Model x Trial interactions, with a diminishing effect of model influence as personal experience developed. Results are discussed in terms of mediating effects of expectancies and valences on model influences on goal choice as well as the different weights given to social and personal information.