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Did anyone really chose a house because of the floral arrangements? Or professional lighting and sound system during the skit? How about the engraved napkins?
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Yes, I think they do, which is why it's a problem -- it'd be really good for the Greek system if PNMs weren't easily wowed, and didn't take those details as signs of a super-strong institution, and just chose based on sisterhood. But marketing works. When a group appears professional, organized, and wealthy, which is what those detail can do, it works.
Of course, the fact that it works is the reason why stopping the madness has to come from Panhellenic, not from chapters. Think of how the chapter's philanthropy fund would benefit from the $20,000 currently spent on ballons and flower arrangements.