In fact, many people consider that choosing between normal exposure and overexposure is the contrast control knob for C-41 & analog printing, as you cannot alter contrast in printing as easily as in B/W printing. Of course, overexposure results in denser negative, but when this is compensated in printing by exposing the paper longer, the result is an image lower in contrast than with normal neg. Some people may overexpose even 3 stops just for extreme contrast reduction, still with very high image quality (if you like low contrast). Of course it reduces sharpness a little because of reflections inside the film.
Of course, there is a limit even with color neg overexposure latitude; here's a scan of neg overexposed 9 stops (that was 1 second in bright sunlight, 1/500 metered!) , scanned and altered digitally to reveal the data: Dead Link Removed . This kind of extreme overexposure cannot be printed traditionally and it isn't of good quality at all, but as you can see, negative film somehow performs even very extreme overexposures; --- one stop, even two stops over is just normal usage, and you could say that it never loses any information.
On the other hand, underexposure (when there is enough light to shoot normally) is seldom used by choice, unless a blocked-shadows look is desired. Then, highlights such as sky can be placed in the middle of the curve producing high contrast and saturation. But underexposure starts to cut down image details from the shadows very quickly. Image underexposed three stops may be almost unusable but image overexposed three stops can be completely ok.