Mental models are coherently organized knowledge structures used to explain phenomena. They interact with social environments and evolve with the interaction. Lacking daily experience with phenomena, the social interaction gains much more importance. In this part of our multiphase study, we investigate how instructional interactions influenced students' mental models about the quantization of physical observables. Class observations and interviews were analysed by studying students' mental models constructed in a modern physics course during an academic semester. The research revealed that students' mental models were influenced by (1) the manner of teaching, including instructional methodologies and content specific techniques used by the instructor, (2) order of the topics and familiarity with concepts, and (3) peers.