This research explores and tests the effect of an innovative performance feedback practice--feedback supplemented with web-based peer benchmarking--through a lens of social cognitive framework for self-regulated learning. The results suggest that providing performance feedback with references to exemplary peer output is positively associated with task mastery orientation, perceived autonomy, and perceived competence which in turn improve students' intrinsic motivation and self-regulated learning strategies. The results also suggest that these effects were not observed in a similar course in which performance feedback was not supplemented with web-based peer benchmarking.