Volatility

The percentage of industry or company volume sold during a period of time that changes from one set of suppliers to another. Volatility can be either positive volatility, the sum of Get In plus Increase Use, or negative volatility, the sum of Get Out plus Decrease Use. Unless many customers are entering or leaving a market, the industry’s positive and negative volatility are very close in size. However, an individual company’s positive and negative volatility may be quite different from one another. (See also Negative Volatility, Net Volatility, Positive Volatility)