PurposeDrawing on self-determination theory and insights from the literature on service-dominant (S-D) logic and value co-creation, this paper aims to investigate the impacts of an S-D orientation on positive customer outcomes (i.e. customer participation behaviors, customer citizenship behaviors and quality of life) and the underlying mechanisms of these effects.Design/methodology/approachCustom travel service (CTS) was chosen as the research setting. In total, 303 valid questionnaires were gathered from tourists in China. The partial least squares structural equation modeling approach was used for model estimation.FindingsTourism firms’ S-D orientation positively influences customer participation behaviors via customer psychological need satisfaction (i.e. perceived autonomy, competence and relatedness), customer citizenship behaviors via perceived relatedness and customer quality of life via perceived autonomy and perceived competence.Research limitations/implicationsAlthough the impact of S-D orientation is studied in the CTS context, this study illustrates how firms embracing S-D logic can facilitate value co-creation and customer quality of life, presenting a more precise picture for academics and practitioners.Originality/valueThis paper is the first attempt to empirically examine the relationships among S-D orientation, customer value cocreation and quality of life. The relevance of customer psychological need satisfaction is acknowledged in this study.