Final answer:
Discontinuous innovation refers to a product that is so novel it requires significant learning from consumers, as it's unlike anything previously on the market. This innovation often gives businesses a temporary market advantage and the opportunity to earn above-normal profits. Examples include the move from feature phones to smartphones.
Step-by-step explanation:
The type of product innovation that requires consumers to learn a lot for its effective use because it's the first of its kind on the market is referred to as discontinuous innovation. This is because discontinuous innovation represents a significant leap compared to what was previously available, demanding substantial user learning and behavior change. An example is the transition from feature phones to smartphones, which brought about a profound shift in how consumers interact with their devices. Unlike incremental innovation, which offers minor improvements over previous versions, or radical innovation, which can also represent a significant technological breakthrough, discontinuous innovation implies a sweeping change in habits, routines, and product usage.
Businesses aim to generate profits by creating innovative products that can be produced cost-effectively or have desirable characteristics that set them apart from the competition. When a company introduces a discontinuous innovation, it can temporarily secure a significant market advantage, allowing it to capture above-normal profits until competitors eventually catch up.