The patterns of brain activation during norm-referenced and criterion-referenced feedback were compared, using the functional magnetic resonance imaging (fMRI). Twenty-two healthy right-handed individuals performed a series of perceptual judgment tasks while their brain activity was recorded. The participants responded to a performance-approach goal survey and performed practice trials prior to scanning, during which their perceived competence toward the novel task was manipulated with bogus performance information. During scanning, the participants received either norm-referenced or criterion-referenced feedback after each performance. The brain regions associated with negative affect including the posterior cingulate cortex, the medial frontal gyrus, and the inferior parietal lobule were recruited during norm-referenced feedback only among the low-competence participants. In contrast, significant activation was observed in the identical cortical areas involved in negative affect during criterion-referenced feedback only among the high-competence participants. Regardless of the level of perceived competence, performance-approach goal scores correlated positively with activation in the brain areas implicated in the negative emotion during norm-referenced feedback. The present findings provide insight into the potential costs and benefits of normative assessment. (Contains 4 tables and 5 figures.)