As Edward M. Liddy, American International Group's chairman and CEO, appears on Capitol Hill today to take the heat for millions of dollars' worth of bonuses doled out to employees, public relations pros are shaking their heads at the company's blundering crisis management in a business that's built on trust.

Eric Dezenhall, CEO and co-founder of Dezenhall Resources, a communications consultancy, tells Ad Age's Michael Bush that most consumers are not going to be able to see past the bonus issue, let alone want to listen to the company's reasoning for handing them out. "Contrary to what my compadres in the crisis sector will preach, an ad campaign featuring little girls with flowers and talking about how much AIG cares about the consumers is a complete waste of money," he says.

But Torod Neptune, senior vp-global public affairs at Waggener Edstrom, says its research shows that consumers are looking to hear from financial-services institutions and "this is something AIG needs to be getting in front of pretty aggressively." Neptune says that 44% of 1,000 consumers Waggener Edstrom polled say they've heard something from financial-service institutions but felt more negative about the industry afterward; 38% say they heard nothing at all; and 11% say they feel better about the industry after hearing from it.

Which does beg the "why bother?" question, does it not? Read the whole story...

Geico CMO Ted Ward talks with Kenneth Hein about why Kash -- an odd-looking stack of money with cookie monster eyes -- is drawing such a rabid following.

It comes down to good timing, as do most things. Ward admits Kash is not his, or his CEO's, favorite Geico character, nor are the cavemen. (It's the gecko, as it would be for all persons of discernment).

Back to Kash, lots of people are writing e-mails and sending letters, according to Ward. "They all want him to talk," he says. But, as usual, Geico is one counterintuitive move ahead of the social Web zeitgeist. "That's probably the last place we'll go. I think we'll keep him odd and silent." Read the whole story...

Apple yesterday gave a sneak peek of 100 forthcoming software updates for the iPhone, Jefferson Graham reports, including a feature where developers can bring in extra revenue with sales of extra levels of game play; magazine, newspaper and e-book subscriptions; even music purchases that can be played within the game.

"There are other business models developers want to support, and we've been listening," says Apple svp Scott Forstall.

Among the consumer-friendly features coming to the iPhone are the ability to copy blocks of text from an email and paste it elsewhere; the ability to connect iPhone apps to one another wirelessly (good for sharing contacts or playing games); a new voice memo feature that lets user record memos and save them as audio files.

"This is the upgrade Apple needed to do to get people even more interested in the iPhone," says Tim Bajarin, an analyst with Creative Strategies. Read the whole story...

A new World Bank report underscores a "worrying" trend toward protectionism as countries rush to shield their ailing domestic industries during the global economic crisis, Anthony Faiola reports. It says that at least 17 of the 20 major nations that vowed at a November summit to avoid protectionist steps have violated that promise.

It also comes one day after Mexico vowed to slap new restrictions on 90 U.S. products in retaliation against Washington for canceling a program that allowed Mexican truck drivers the right to transport goods across the United States.

"Leaders must not heed the siren-song of protectionist fixes, whether for trade, stimulus packages or bailouts," says World Bank Group president Robert B. Zoellick. "Economic isolationism can lead to a negative spiral of events such as those we saw in the 1930s," he says, "which made a bad situation much, much worse." Read the whole story...

About 40% of consumer surveyed by GfK Roper Consulting during mid-2008 and early 2009 said they'd be willing to do without cable or satellite TV, Arik Hesseldahl reports. Only 37% said they were getting good value for the price they pay. When asked to identify the last nonessential thing they'd be willing to give up, 15% said their cell phone or BlackBerry. The only item that ranked higher on that list, at 16%, was "driving where I want, when I want."

Younger consumers felt even more strongly about mobile devices -- 23% said their phone would be the last thing given up, nearly twice the percentage of adults aged 45-59.

These results don't surprise researchers at GfK Roper, who have been studying consumer habits since the 1970s. People tend to eschew products deemed frivolous or overpriced, according to Jon Berry, a vp at the consulting firm. But that doesn't keep them from embracing new technologies -- even items that carry high price tags if they are seen to deliver good value for the cost. Read the whole story...

While demand for its Big G cereals, Betty Crocker dessert mixes and Totino's pizza increased as consumers ate more at home, General Mills' third-quarter profit fell 33%, hurt by higher product costs and marketing expenses, Andria Cheng reports. Read the whole story...

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