A means of measuring the effect of final demand variations and structural changes on the output of the distributive trades is developed. A review of the marketing literature finds conceptual shortcomings that limit the results ofprevious work. General systems theory serves as the basis for trade-flow table analysis, which addresses some of these shortcomings. This type of analysis can be applied in cross-sectional and longitudinal comparative studies.

The methodology developed in a preceding article, "The Output of Distributive Systems: A Conceptual Framework," is applied to a comparison of the Australian, Dutch, and West German distributive systems. System output is affected by the level and composition of final demand and by the structure of that system. Final demand and structure, in turn, are affected by the environment in which the system exists. No theory linking the distributive system and particular environmental fields currently exists, however. Such a theory needs to be developed before causal statements regarding this relationship can be made.

Institutional studies of retailing have primarily focused on the number and types of retailers to describe retail structure. This study provides an alternative approach to measuring retail structure based on general systems theory. The focus is on the examination of the work performed by retailers. Input‐output tables transformed into trade‐flow tables allow for such a functional approach to the measurement of retail activities in Germany and the Netherlands. This methodology allows for the examination of linkages of the retail sector with other parts of a national economy and provides an important tool for comparative marketing studies. The findings for Germany and the Netherlands are consistent with the marketing channels literature.

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The marketing literature still reflects Levitt