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I think most intelligent people generally take the "tiers" with a grain of salt. But it's also easy to say that at most schools they are pretty ingrained in Greek culture and that even those who don't believe they mean much could rattle off which groups are in which tiers in a heartbeat.
My school has been named to me as an example of a system that doesn't really follow the typical "tier" system and I'm inclined to agree. Although you could probably divide the sororities up if you tried, for the most part I agree with those who have told me that there is a strong "top two" or "top three" and then the rest of the sororities are really not too different in strength -- it all depends on what you're looking for in a group. Ditto the fraternities.
I wouldn't really say that there's any concrete way of figuring "tiers" out, although rush figures would be one way for the sororities. But then, I can think of many chapters on this campus who would rank lower or higher than their return rates suggest simply because the way rushees view the groups is a little different from the way the rest of campus does.
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