Although learning theories suggest that repeat testing can be highly beneficial for students' retention and understanding of material, there is, so far, little guidance on how to implement repeat testing in higher education. This paper introduces one method for implementing a three‐stage model of repeat testing via computer‐aided formative assessment by employing audience response systems (ARS) and online tests complementarily. The first stage utilises ARS for immediate testing throughout lectures, the second stage facilitates delayed testing using online tests between lectures and the third stage employs ARS to aid in‐class revision of the previously studied material at the beginning of subsequent lectures. Using the example of a Business Economics course taught to MBA students at a UK university, the study investigates how two cohorts of students (n1 = 46, n2 = 48) perceived repeat testing to affect their understanding of the subject as well as their learning motivation and behaviour. The exploratory research indicates that most students perceived all three test stages as helpful to develop their understanding of the subject. However, students who favoured a deep approach to learning (DA) rated testing more positively than students who preferred a surface approach to learning (SA). Surprisingly, students who favoured a DA also reported a greater influence of the tests on their learning motivation and behaviour than students who preferred an SA. These findings mitigate concerns that experienced, effective learners might perceive repeated, multiple‐choice‐based testing as unhelpful or disruptive to their learning.