Unpacking the university environment

Universities increasingly compete on environmental quality, yet the mechanism converting it into brand equity remains under-specified. This study separates the university environment into learning and emotional dimensions and tests whether their associations with brand equity are mediated by student engagement and moderated by institutional reputation. Integrating the stimulus–organism–response framework, student involvement theory, and signaling theory, we analyzed data from 256 students at Vietnam National University, Hanoi, using partial least squares structural equation modeling. The learning environment was associated with both engagement and equity, whereas the emotional environment was associated with equity only through engagement. Brand reputation dampened rather than amplified the engagement–equity link. These findings suggest that engagement-oriented investments may yield the highest returns for institutions with nascent reputational capital.