What behavior is characterized by buying in advance of demand to benefit from lower prices?

The behavior characterized by buying in advance of demand to benefit from lower prices is best described as inventory hoarding. This practice occurs when individuals or organizations purchase and store larger quantities of goods than their immediate needs dictate, often in anticipation of future price increases or supply shortages. By acquiring these items before prices rise, buyers aim to save costs in the long term.

This strategy can help mitigate risks associated with price volatility, ensuring a stable supply of essential goods during times when prices may increase. It's particularly common in industries where price fluctuations are expected or when anticipating changes in supply due to market conditions.

In contrast, 'shortage gaming' refers to the behavior of ordering large quantities during periods of perceived scarcity, which may lead to supply chain shocks. 'Price fluctuations' is a broader concept that describes variability in prices over time but does not specifically refer to the action of purchasing ahead of demand. Lastly, 'order batching' involves placing large orders at once to reduce order frequency and associated costs, but it does not inherently include the motive of buying ahead specifically to take advantage of lower prices.