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In this tutorial, Kevin demonstrates how to create multiple dependent drop-down lists in Microsoft Excel. The purpose of using these lists is to minimize data entry errors by allowing users to select options easily. The first drop-down list influences what options are available in subsequent lists. To follow along, viewers can access a sample file provided in the video description. Kevin explains the context by introducing a scenario at the Kevin Cookie Company, where he needs to compile an order log that records the salesperson responsible for each order and other related details.