Many colleges of business require a course in computer applications concepts, often consisting of spreadsheet and database applications. Quite often, students resist taking the class because they do not see any worth to it, it duplicates what they already have taken, and they already know much of what is purported to be taught in the class. Instructors too are often frustrated with this class. This article suggests that part of the problem is the method of instruction often used: lecture and demonstration of tools followed by end‐of‐chapter assignments. We propose that problem‐based learning is an alternative instructional method that may produce more positive results for students. To examine this approach, a semester‐long study involving 186 business school students enrolled in a computer applications concept course of seven different sections was conducted. Student motivation, computer self‐efficacy, knowledge, and satisfaction were studied. Results strongly support a problem‐based learning approach as an instructional approach to teaching this class