Artificial Volatility in Demand

This is variation in demand resulting from the organizational policies and practices. For example, the cigarette industry in the past created fluctuations in demand by telling customers that they would be raising prices by the end of a quarter. If a customer bought by the deadline or before, it would be getting them at old prices. This caused a surge in demand before the end of the quarter and, after that, the demand sharply declined. This type of volatility in demand is artificially created.