Yes, so have I. It fails, and ultimately fails them.
This depends on the market, the product/service and its positioning. Some products and services are price sensitive, others are not. Some customers are more price sensitive and others are not.
It's why we have some products targeted to customers who are primarily price sensitive and others for customers who consider that quality and service are important, have a value and are willing to pay for that.
However, don't make the assumption that people who buy on price are not also looking for good service. They may well be. The problem is that there is not usually enough margin to pay for it, or the customer is unwilling to pay the extra for service.
Equally, don't make the assumption that customers who are looking for good quality and service are soft targets for price. However, they are more likely to appreciate that there is a cost involved in providing good service and are willing to pay for that.
Ah well.
Good enough, is good enough to some. One can always strive to improve.