In a situation where Gary's Gym has lowered its prices, but eFitness has chosen to increase its advertising, what is the underlying reason for both firms maintaining their current strategies despite the changes in their market tactics?

In this situation, both Gary's Gym and eFitness are responding to market changes in a way that reflects their individual strategies. Gary's Gym lowered its prices to attract more customers, hoping that this will increase membership and profits. On the other hand, eFitness is increasing its advertising to highlight its unique services or benefits, aiming to keep its current members and attract new ones. The underlying reason both firms are sticking to their strategies is that they believe these actions will maximize their own benefits, despite what the other is doing. For example, if Gary's Gym gains more customers due to lower prices, it might offset any loss from lower prices, while eFitness may believe that effective advertising can maintain or even grow its market share.