This study aimed to establish a pedagogical positioning of a business marketing simulation as a grounded learning teaching tool and empirically assess the dimensions of cognitive absorption related to grounded learning effectiveness in an iterative business simulation environment. The method/design and sample consisted of a field study survey instrument following the completion of an iterative marketing simulation with six decision periods. The matched, cross-sectional sample consisted of 391 undergraduate business students enrolled in marketing principles classes. The study used structural equation modeling to investigate the relations between the dimensions of cognitive absorption and grounded learning effectiveness. The model predicted 57% of the variance in grounded learning effectiveness. Ten hypotheses were tested in this study; and the results indicated that heightened curiosity, simulation behavioral control, and heightened enjoyment were significant predictors of grounded learning effectiveness. The results also showcased that instructional effectiveness was a predictor of heightened curiosity and behavioral control. Heightened curiosity was a significant predictor of heightened enjoyment. Also, focused immersion and temporal dissociation were predictors of heightened enjoyment. This research empirically assesses grounded learning effectiveness in relation to five factors contributing to participant cognitive absorption and instruction effectiveness in a large sample from a typical population. It gives educators insight into the motivational antecedents to grounded learning effectiveness. Consequently, it provides a basis for marketing educators to manage classroom activities to stimulate the motivational antecedents to grounded learning effectiveness.