Study participants form beliefs based on cues present in a testing situation (demand characteristics). These beliefs can alter study outcomes (demand effects). Neglecting demand effects can threaten the internal and external validity of studies (including their replication). While demand characteristics garnered much attention following Orne’s introduction of this notion, consideration of their effects has become sparse in experimental reports. Moreover, the concept remains confusing. Here, we introduce a conceptual framework for subjective experiences elicited by demand characteristics. The model distinguishes between participants’ awareness of the hypothesis, their motivation to comply with it, and the strategy they use to meet situational requirements. We stress that demand characteristics can give rise to genuine experiences. To illustrate, we apply the model to Evaluative Conditioning and the Rubber Hand Illusion. In the General Discussion, we discuss risks and opportunities associated with demand characteristics, and we explain that they remain highly relevant to current research.