Which of the following is a key benefit of conducting market research?

Identifying customer needs is a fundamental benefit of conducting market research because it provides valuable insights into what consumers actually want and expect from products or services. Understanding these needs allows businesses to tailor their offerings to better meet the demands of their target audience, ultimately leading to improved customer satisfaction and loyalty. By aligning products or services with customer preferences, organizations can increase their chances of success in a competitive market.

The other options reflect different aspects of marketing but do not capture the primary purpose and advantage of market research. While reducing marketing costs and increasing product prices might be outcomes influenced by knowledge gained from research, they are not direct benefits of the research process itself. Similarly, limiting market reach is generally seen as a negative outcome; effective market research typically aims to expand reach by tapping into the identified needs of customers.