Do you think there is a point where a low-price/no frills strategy would be detrimental to customer satisfaction? What might it depend on?

Southwest consistently earned high ratings for its customer satisfaction, higher than those of its giant competitors. Yet, these major airlines all offered more food service than Southwest’s peanuts and drinks. They also provided such additional amenities as advance-seat assignments, in-flight entertainment on longer flights, the opportunity to upgrade, and a comprehensive frequent-flyer program. Yet Southwest got the highest points for customer satisfaction.
Could something else be involved here?
Let’s call it expectations. If a customer has high expectations, perhaps because of a high price and/or the advertising promising high-quality, luxury accommodations, dependable service, or whatever, then if the product or service does not live up to these expectations, customer satisfaction dives. Turning to the airlines, customers were not disappointed in the service of Southwest because they do not expect luxury; Southwest does not advertise this. They expect no frills, but pleasant and courteous treatment by employees, dependable and safe flights, and the low prices. On the other hand, expectations are higher for the bigger carriers with their higher prices. This is well and good for the first- or business-class service. But for the many who fl y coach . . .?