Sure. There must be a balance between price and quality of services. If the service is less quality than that of competitors, then such a business will be uncompetitive.
But there are still people who are willing to pay cheaper, but the quality will be dubious
Exactly! Some people might think that cheaper is good but if they will going to think about the quality, it will going to be a questions on their minds too. Sometimes cheaper is not really a good option when it comes to this kinds of things because the quality is much important than quantity.