The word "以儆效尤" is formed by sequentially combining four characters: "以" functions as a conjunction meaning "in order to", "儆" means "to warn or admonish", "效" means "to imitate or follow", and "尤" refers to a wrongdoer or someone who has committed a fault. The phrase constructs a literal meaning of "in order to warn others against imitating the wrongdoer", with each character contributing directly to this purposeful warning.