Cheap & service don't really go together. Many things can affect "cheap" and we don't know if you mean $5 is cheap or $2 is cheap or $10 is cheap.
We also don't know what you are hosting and what you define as service... If it's speed, reliability, customer support, etc.

So we really don't know what you are comparing. A cheap price could be a big company with overloaded servers but a pretty good support staff, or it could be a kid with a reseller plan trying to get the newest Play Station and so customer service is not there but still low price...

I always advise if it's a personal "play" site like a family site or personal blog so you can rant about whatever then cheap is OK bu if you are going to operate any type business related site the site experience is a reflection of the company. I have looked at software or other deals on the net and the sites were so slow I left thinking "if they can't pay for good speed on their own site, why should I trust their products?"

But it could apply to any type business. If it is a business-related site go for fast, dependable, and support you can count on.

If slow times for your personal blog or some downtime here & there don't bother you-then cheap is fine...