Count me as part of the group that wants the best deal on the cheapest crap. Everything is disposible these days, so you don't need it to last. Tastes/what is cool are changing more rapidly, and people want to keep up or change more often. It doesn't make sense to buy something that is twice or 3 times more expensive when you change it and save money.
Haggling over price is what I do. I will do it anywhere, and have even done it at Walmart. Sometimes you get a price break and sometimes you don't, but it never hurts to ask. If I save a few bucks, then I just got a "free" lunch. There is nothing wrong with being cheap.
I guess what I am saying is that I will always look for the best price on commodities/goods. I am not going to pay more to subsidize a poor business model.
Services is a completely different story, and I will pay more for better service. If these small shops really want to differentiate themselves, they need to offer more in the way of value added services. If they cannot offer something more, then they do not deserve my hard earned money.