When Universities Become Brands

Choosing a college from one of the America’s 5,775 public and private options in the U.S. can be one of the biggest decisions a young adult makes.  With 25-million applicants making these choices, a large industry exists to help with this process, encompassing high-school guidance counsellors, college admissions offices, professional advisors, industry organizations, books and guides, and ranking publications – all devoted to help applications find the “best” school for them.[i] From elite private universities to regional state colleges, for-profit institutions, and community colleges, the hierarchy of institutions is well-recognized and often shapes public opinion. This stratification raises crucial questions about access, equity, and whether the status of an institution significantly determines a graduate’s long-term success.

This “brand hierarchy” is a reality of the U.S. higher education system. The public often assigns greater value to highly selective, well-resourced institutions with name recognition Rankings and media portrayals fuel this perception, creating an implicit understanding that some colleges are simply “better” than others. In fact, studies from the U.S. Department of Education show 74 % of prospective students rating important “reputation/academic quality” the most important factor in choosing a school –– more important than tuition cost (67%), proximity to home (26%), or personal recommendations (24%).[ii]  

A central question for the public is whether the name of the institution on a diploma translates to tangible differences in earnings potential and life satisfaction. There’s a prevailing assumption that graduates of elite universities have a clear advantage, but the reality is more complex. Partly this has to do with the structural benefits that higher education institutions provide as a transitional ground between high school and adulthood. For many young adults, elite colleges are seen as sources of social connections, professional networks, access to organizations, recommendations, and mentoring, much of linked to a particular college or university brand identity.

Admissions processes, particularly at elite schools, contribute to the perception of stratification. The intense competition reinforces the notion of scarcity, and the “brand” of the university becomes a factor for ambitious students. Furthermore, legacy admissions systems, where preference is given to children of alumni, perpetuate the image of higher education as tied to existing social class structures –– a perception not easily dispelled. And obviously, acceptance rates very widely, according to the status and type of institution involved. The most exclusive schools like Caltech, Harvard, MIT, Princeton, and Stanford take about 4% of applicants.[iii]Most public community colleges accept all applicants, although demand for certain classes can limit individual enrollments. In all of this, it is very important to keep in mind one’s individual needs, since some highly competitive and prestigious institutions do not have the greatest programs in certain fields, and less well-known schools may Have the best program in the nation in certain areas.

The “brand” of an institution undeniably influences application patterns and can even impact philanthropic behavior. Elite schools often enjoy a fundraising advantage, powered in part by a public perception of “excellence” that attracts large donations. Mario Biagioli takes up this issue in the recent book Distinctive Excellence: The Unusual Roots and Global Reach of Academic Brands,examining how universities have transformed into powerful brands, influencing both cultural and economic landscapes.[iv] He highlights the contradictions modern universities face: balancing intellectual pursuits with business realities, serving public interests while operating like corporations, and upholding local identities alongside global ambitions. Academic branding is nothing new, Biagioli argues, since universities long have functioned as luxury brands, their prestige attracting both top students and significant funding.  

Bolstering institutional stratification are college rankings like those by U.S. News & World Report.  While such rankings hold considerable sway in public opinion, the methodologies used are often opaque and contentious. Critics argue that they overemphasize factors like reputation and resources while failing to capture meaningful differences in the student experience. These rankings contribute to an almost self-fulfilling cycle, with top-ranked schools attracting even more applicants and resources, further solidifying the perceived hierarchy. In response to an ever-louder chorus of complaints in recent years, U.S. News has begun to modify its process. Unsurprisingly the move elicited mixed reviews from schools ending up higher or lower on the infamous rankings.

The biggest stir came from the shift by US News to place greater emphases on student outcomes and social mobility. This adjustment led to notable shifts in the rankings, with many public institutions climbing significantly, while some private colleges experienced substantial drops.[v]  The new focus on outcomes and affordability over traditional measures of educational quality, such as class sizes and faculty credentials, prompted severe criticism from leaders of some of the negatively affected private institutions. These leaders, including those from Vanderbilt and Oberlin, expressed concerns about the rankings’ accuracy and the methodology’s lack of rigor.[vi] They argued that the changes might be misleading to prospective students and their families. Despite the backlash and threats from some institutions to withdraw from participating in the rankings, U.S. News defended its new approach, stating it reflects the evolving landscape of higher education. This situation highlights the ongoing controversy and influence of college rankings in higher education marketing and admissions.

All of this leaves the public confused on many levels –– and consequently vulnerable to negative feeling about college. Public opinion may be divided on whether higher education reinforces rather than mitigates social inequality. But most people accept that stratification by institutional type can mirror societal divides based on class, race, ethnicity, and other factors, with only one in three Americans believing the college application proves to be “fair” to everyone.[vii] First-generation students and those from underrepresented backgrounds may perceive less opportunity and access at elite institutions. High costs and varying levels of financial aid add to the debate over who truly gets a seat at the table. Right now, it isn’t clear whether any of this is going to change. The future is likely to bring shifts in public opinion as the demographics of students evolve and the costs of higher education continue to climb. Alternative forms of credentialing, such as badges and industry-backed certifications, may challenge traditional degrees and the institutions that grant them. Public policy could also play a role as increased scrutiny of outcomes, transparency in financial aid, and potential shifts in funding put pressure on brands. Then again, American capitalism hardly shows any signs of waning or abandoning branding as the centerpiece of its governing logic.


[i] “In in 2021-22 the number of students enrolled in post-secondary institutions as 24, 905, 242. This is based on 5775 institutions” U.S. Department of Education (2023). Accessed May 12, 2024 https://nces.ed.gov/ipeds/trendgenerator/app/answer/2/2#:~:text=In%20year%202021%2D22%2C%20the,is%20based%20on%205%2C775%20institutions.

[ii] “Factors the influence Student College Choice,” U.S. Department of Education (Nov 2018). Accessed May 7, 2024.https://nces.ed.gov/pubs2019/2019119/index.asp#:~:text=The%20three%20factors%20with%20the,cent)%20(Figure%201).

[iii]  Imed Bouchrika “List of College Acceptance Rates, 2024″research.com (Apr. 17, 2024) Accessed May 7, 2024) https://research.com/education/list-of-college-acceptance-rates

[iv] Mario Biagioli and Madhavi Sunder, Academic Brands: Distinction in Global Higher Education (Cambridge and New York: Cambridge 2022)

[v] Liam Knox, “Rankled by Rankings,” Insidehighered.com (Sep. 22. 2023) Accessed May 8, 2024. https://www.insidehighered.com/news/admissions/traditional-age/2023/09/22/us-news-rankings-changes-spur-complaints-and-apologies

[vi] Ibid.

[vii] “Perceptions of College Admission Practices,” Higher Education analytics Center, University of Chicago (2019) Accessed May 8, 2024. https://www.norc.org/content/dam/norc-org/pdfs/perceptions-of-college-admissions-practices.pdf

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